The Purdue University-CME Group Ag Economy Barometer rose 4 points in October to a reading of 110. This modest improvement in farmer sentiment resulted from farmers’ improved perspective on current conditions on their farms as well as their expectations for the future.
The Index of Current Conditions rose 3 points to 101 while the Index of Future Expectations rose 5 points to 114. Farmers in this month’s survey were a bit less concerned about the risk of lower prices for crops and livestock and felt somewhat better about their farms’ financial situation than a month earlier.
Producers continue to be cautiously optimistic about farmland values, particularly when asked to look ahead five years.
Climate change means changes in farm operations
Nearly one in four corn and soybean farmers responding to this month’s survey reported making changes in their farm operation in response to long-term weather pattern changes in their area.
This month’s survey asked corn and soybean producers if they have explicitly made any changes in their farming operation in response to changes in long-term weather patterns in their area. Nearly one out of four corn/soybean farmers (24%) in the October survey indicated they implemented changes in their farm operations to better deal with shifting weather patterns.
A follow-up question posed only to farmers who said they’ve made changes, asked them to identify the biggest operational changes they’ve made to date. Responses indicated farmers are choosing from among a broad mix of technologies to adapt to changing weather patterns.
- 25% increased use of no-till
- 23% changed mix of crops planted
- 20% planted more drought-resistant varieties
A smaller subset of farmers indicated they’ve made capital investments to better prepare for shifting weather patterns. Nine percent of farmers said they “installed tile drainage” with another 9% of respondents indicating that they “installed irrigation."
